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Finding profit maximising output and price

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The demand function for a product sold by an oligopolist operating in the short run is given below:

QD = 370 - P

The firm's marginal cost function is given below:

MC = 10 + 4Q

Calculate the profit-maximizing price and quantity, if the firm operates in the short run.

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Solution Summary

Solution explains the steps in finding profit maximising output and price for oligopolist in short run.

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Let Q be profit maximizing quantity and P be the corresponding price

Demand at this ...

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  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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